CBR: Key Rate Down to 6.5% a Year

28 October 2019 (09:08)

UrBC, Moscow, October 28, 2019. The Central Bank of Russia’s Board of Directors cut the key rate by 50 bp down to 6.5% p.a., the bank’s website states.

‘Inflation slowdown is overshooting the forecast. Inflation expectations continue to decrease. The Russian economy’s growth rate still remains subdued. Risks of a substantial global economic slowdown persist. Disinflationary risks exceed pro-inflationary risks over the short-term horizon. In these circumstances, the Bank of Russia has lowered its annual inflation forecast for 2019 from 4.0-4.5% to 3.2-3.7%. Given the monetary policy stance, annual inflation will come in at 3.5-4.0% in 2020 and will remain close to 4% further on,’ the CBR’s latest press release says.

The next BOD meeting where possible cuts or increases of the key rate will be considered has be scheduled for December 13, 2019.

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